Question 1

Which of the following best explains the decline in population growth in the major industrialized countries?

Accepted Answer

A) Lack of natural resources 
B) A reduction in life expectancy 
C) High income per capita 
D) Not enough leisure time 
E) The increased likelihood of both parents working 
A) Lack of natural resources 
B) A reduction in life expectancy 
C) High income per capita 
D) Not enough leisure time 
E) The increased likelihood of both parents working C

Question 2

There is no connection between a country's geographic location and its per capita income level.

Accepted Answer

A) True 
 B)False  False

Question 3

People choose to have fewer children if

Accepted Answer

A) the life expectancy of their children increases. 
B) they are less educated. 
C) they are poor. 
D) child labor is a common practice. 
E) the life expectancy of their children decreases. 
A) the life expectancy of their children increases. 
B) they are less educated. 
C) they are poor. 
D) child labor is a common practice. 
E) the life expectancy of their children decreases. A

Question 4

More advanced scientific knowledge is the main reason why the Industrial Revolution occurred when and where it did.

Accepted Answer

A) True 
 B)False

Question 5

The informal economy has been beneficial to Peru's development.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following countries has ranked high on the Millennium Challenge Corporation's 16 indicators,and thus obtained American foreign aid in recent years?

Accepted Answer

A) China 
B) Georgia 
C) Myanmar 
D) Iran 
E) North Korea 
A) China 
B) Georgia 
C) Myanmar 
D) Iran 
E) North Korea

Question 7

A country located on the lower-right-hand corner of the catch-up line is

Accepted Answer

A) Not enough information is given. 
B) a rich country experiencing slow growth rates. 
C) a poor country experiencing slow growth rates. 
D) a poor country experiencing rapid growth rates. 
E) a rich country enjoying rapid growth rates. 
A) Not enough information is given. 
B) a rich country experiencing slow growth rates. 
C) a poor country experiencing slow growth rates. 
D) a poor country experiencing rapid growth rates. 
E) a rich country enjoying rapid growth rates.

Question 8

According to Karl Marx,

Accepted Answer

A) the development of science was the key to economic growth. 
B) Malthus's predictions were coming true. 
C) the bourgeois class inhibited growth. 
D) the creation of the bourgeois class was the key to economic growth. 
E) economic growth cannot occur under capitalism. 
A) the development of science was the key to economic growth. 
B) Malthus's predictions were coming true. 
C) the bourgeois class inhibited growth. 
D) the creation of the bourgeois class was the key to economic growth. 
E) economic growth cannot occur under capitalism.

Question 9

Huge disparities in world income distribution remain today.

Accepted Answer

A) True 
 B)False

Question 10

In terms of the catch-up line for advanced countries from 1960 to 2005,Japan is an example of a country that was richer and therefore grew less rapidly.

Accepted Answer

A) True 
 B)False

Question 11

Does the saving rate in developed countries have any effect on the time it takes for developing countries to catch up with the developed part of the world? Explain.

Accepted Answer

Yes.An increase in the saving rate of de

Question 12

What is meant by the term informal economy? How does its existence affect economic growth?

Accepted Answer

The informal economy consists of those b

Question 13

Which of the following is one of the drivers for the Emerging Africa?

Accepted Answer

A) the spread of the Internet technology and cellphones 
B) the aging population 
C) the spread of the Islamic religion 
D) high population growth 
E) tight government control 
A) the spread of the Internet technology and cellphones 
B) the aging population 
C) the spread of the Islamic religion 
D) high population growth 
E) tight government control

Question 14

Which of the following increases the likelihood of poor countries catching up to rich countries,and which decreases the likelihood? Explain.
(A)Developing countries have better access to the technology of developed countries.
(B)Industrialized countries run larger government budget surpluses.
(C)The level of corruption in developing countries increases.
(D)Developing countries become more reluctant to provide schooling for all their citizens.
(E)Developing countries begin to emphasize export-led strategies.

Accepted Answer

(A) The likelihood of catch-up would inc

Question 15

The emergence of informal sectors in developing economies is due to

Accepted Answer

A) the low income of the population. 
B) heavy restrictions on businesses. 
C) the emergence of a service economy. 
D) the lack of an industrial base. 
E) the drug trade. 
A) the low income of the population. 
B) heavy restrictions on businesses. 
C) the emergence of a service economy. 
D) the lack of an industrial base. 
E) the drug trade.

Question 16

A wise development strategy would be to find a way to quickly bring all the informal sector businesses into the formal sector.

Accepted Answer

A) True 
 B)False

Question 17

For the most part,when making international geographic distinctions,it is accurate to say that

Accepted Answer

A) the South is generally richer than the North. 
B) the West is generally richer than the East. 
C) there is no geographic pattern between rich and poor countries. 
D) the East is generally richer than the West. 
E) the North is generally richer than the South. 
A) the South is generally richer than the North. 
B) the West is generally richer than the East. 
C) there is no geographic pattern between rich and poor countries. 
D) the East is generally richer than the West. 
E) the North is generally richer than the South.

Question 18

When comparing the advanced countries of the world,

Accepted Answer

A) countries with high per capita income in 1960 experienced high growth rates between 1960 and 2005. 
B) every country experienced the same growth rate between 1960 and 2005,regardless of its size in 1960. 
C) the evidence does not support the catch-up behavior predicted by growth theory. 
D) countries with low per capita income in 1960 experienced low growth rates between 1960 and 2005. 
E) the evidence supports the catch-up behavior predicted by growth theory. 
A) countries with high per capita income in 1960 experienced high growth rates between 1960 and 2005. 
B) every country experienced the same growth rate between 1960 and 2005,regardless of its size in 1960. 
C) the evidence does not support the catch-up behavior predicted by growth theory. 
D) countries with low per capita income in 1960 experienced low growth rates between 1960 and 2005. 
E) the evidence supports the catch-up behavior predicted by growth theory.

Question 19

Many of today's developing countries lack

Accepted Answer

A) the government leadership necessary to escape poverty. 
B) the necessary scientific knowledge to escape poverty. 
C) an adequate supply of natural resources. 
D) a sufficient amount of government regulation necessary to escape poverty. 
E) individual property rights. 
A) the government leadership necessary to escape poverty. 
B) the necessary scientific knowledge to escape poverty. 
C) an adequate supply of natural resources. 
D) a sufficient amount of government regulation necessary to escape poverty. 
E) individual property rights.

Question 20

GDP per capita has been a good predictor of productivity growth in the developed countries.

Accepted Answer

A) True 
 B)False

Exam 28: Economic Growth and Globalization

Which of the following best explains the decline in population growth in the major industrialized countries?

There is no connection between a country's geographic location and its per capita income level.

People choose to have fewer children if

More advanced scientific knowledge is the main reason why the Industrial Revolution occurred when and where it did.

The informal economy has been beneficial to Peru's development.

Which of the following countries has ranked high on the Millennium Challenge Corporation's 16 indicators,and thus obtained American foreign aid in recent years?

A country located on the lower-right-hand corner of the catch-up line is

According to Karl Marx,

Huge disparities in world income distribution remain today.

In terms of the catch-up line for advanced countries from 1960 to 2005,Japan is an example of a country that was richer and therefore grew less rapidly.

Does the saving rate in developed countries have any effect on the time it takes for developing countries to catch up with the developed part of the world? Explain.

What is meant by the term informal economy? How does its existence affect economic growth?

Which of the following is one of the drivers for the Emerging Africa?

The emergence of informal sectors in developing economies is due to

A wise development strategy would be to find a way to quickly bring all the informal sector businesses into the formal sector.

For the most part,when making international geographic distinctions,it is accurate to say that

When comparing the advanced countries of the world,

Many of today's developing countries lack

GDP per capita has been a good predictor of productivity growth in the developed countries.

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model: Price Floors,price Ceilings,and Elasticity

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Interaction of People in Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, transfers, and Income Distribution

Public Goods, externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

International Trade

International Finance

Reading,understanding,and Creating Graphs

Consumer Theory With Indifference Curves

Producer Theory With Isoquants

Present Discounted Value

The Miracle of Compound Growth

Deriving the Growth Accounting Formula

Deriving the Formula for the Keynesian Multiplier and the Forward-Looking Consumption Model

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